Originally Posted by
Bullitt
Dollar cost average is, "I have $100,000 and don't want to invest today", despite all the data saying that the best way to do it is lump sum today. You could put in $20,000 every month for five months and get the average cost spread over time. Since markets have an upward bias, chances are your average cost will be higher than if you lump summed it.
In TSP, we do what some call, "opportunity" investing. We don't have any choice but to buy every other week when our paycheck contributions kick in. This is how the overwhelming majority of people invest, through bi-weekly contributions to a 401k.
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